Lecture 8 Notes

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Unformatted text preview: ther south (Hall 2005, pp. 60–64). Using data on initial population densities, I check whether it was the more prosperous or less prosperous areas that selected into the slave trades. Acemoglu, Johnson, and Robinson (2002) have shown that population density is a reasonable indicator of economic prosperity. Figure IV shows the relationship between the natural log of population density in 1400 and ln(exports/area). The data confirm the historical evidence on selection during the slave trades.12 The figure shows that the parts of Africa that were 12. The relationship is similar if one excludes island and North African countries, or if one normalizes slave exports by population rather than land area. Figure shows that parts of Africa that were the most prosperous in 1400 (measured by population density) tend also to be the areas that were most impacted by the slave trades evidence suggests that societies that were the most prosperous, not the most under developed, that selected into the slave trades unlikely that the strong relationship between slave exports and current income is driven by selection Instrumental Variables Use instruments that are correlated with slave exports but are uncorrelated with other country characteristics As instruments for slave exports use distances from each African country to the locations where the slaves were demanded Validity of these instruments relies on presumption: although location of demand influenced the location of supply loca...
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This document was uploaded on 02/26/2014 for the course ECON 541 at The University of British Columbia.

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